Doerkson backs budget, hopes for big cut of forestry funds

Ottawa says Canada’s forestry sector, which faces combined U.S. tariffs and duties of around 35 per cent, will receive the additional funds over six years, starting 2027-28, to improve productivity and competitiveness.

There’s $4 billion for a new “forestry sector accelerator” to invest in large facilities and transform existing ones into biorefineries, biofuel facilities and other projects, while another $2 billion will go toward modernizing facilities and equipment.

A further $500 million will be aimed at improving the fibre supply through better forest management, stewardship and the deployment of technology.

Kim Haakstad, president and chief executive officer of the BC Council of Forest Industries, says it is not clear how much of the money will flow to the sector in B.C., which has been struggling over the last few years.

Haakstad told The Canadian Press the industry’s work with both the provincial and federal governments has been about “stabilizing the sector first.”

Funding alone “cannot resolve the strain on our competitiveness,” she adds in a statement.

“We need a clear strategy with concrete actions and timelines to get more wood moving, attract investment, and protect forestry jobs and communities.”

Still, Haakstad says the $6.5 billion in support “recognizes forestry’s importance to Canada’s economy and comes at a critical time for workers, businesses and communities facing a deepening crisis in the sector.”

Forestry groups in B.C. have warned the industry is at a breaking point, suffering numerous mill closures in recent years.

Haakstad says the money needs to flow soon.

“With the new funding beginning in 2027-28, timely implementation to address the sector’s immediate pressures is essential,” she says in a statement.

“Companies need improved conditions to keep operating today so they can invest in the opportunities of tomorrow.”

Ravi Parmar, B.C.’s outgoing forests minister, says the federal money is a “good start” that reflects the NDP government’s advocacy for the sector over the past two years.

“B.C. needs to get its fair share, Canada’s forest sector needs to get its fair share, when you think of the billions of dollars that have gone to the auto sector and the steel sector,” he says.

“So, kudos to the federal government for recognizing that.”

This report by The Canadian Press was first published Nov. 5, 2026.

Wolfgang Depner, The Canadian Press

by The Canadian Press

Doerkson backs budget, hopes for big cut of forestry funds

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